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A view of Downtown Dubai.

PHOTO BY ARCHIVE


Has your Dubai rent increased by a big margin? Here’s why

Dubai property rentals are seeing an increase of up to 36 percent as occupancy levels reached a 5-year high in the emirate, experts said.

Industry sources said there has been a spike in property demand in recent months as more expats and their families moved to Dubai. The UAE has implemented various new entry visas to make it easier for expats to live and work in the emirates.

Downtown Dubai, JLT, Business Bay, Dubai Marina and Dubai Hills are among the top locations in Dubai where apartment rentals have gone up.

A tenant at one of the high rises in Downtown Dubai told Expatmedia.net that rentals for an apartment went from Dh160,000 last year to an average of Dh250,000 this year, or an increase of 36 percent.

Should tenants expect more rental increases? It looks likely, with property supply struggling to keep up with the demand, experts said.

Richard Waind, Group Managing Director of Betterhomes, said he expects property demand to “continue to outstrip supply over the next period”.

“Dubai’s recent population growth continues to put pressure on today’s rental inventory, and we see rapid price increases in the most popular areas, with occupancy across Dubai at a five-year high,” Waind said.

Many tenants are reportedly choosing to renew their lease in an effort to keep rental costs low, while also avoiding the additional costs of moving to a new home.

Prathyusha Gurrapu, head of research at real estate consultancy Core, said the sharp increase in rents will not be sustainable.

“As inflation and the rising cost of living are not at par with salary increases, coupled with ongoing rents considerably contracting disposable incomes, many tenants are pushed to either downsize, move to affordable areas, and in many cases, buy as rental outflows are greater than mortgage payments,” Gurrapu said. ICA/Expat Media


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